Saudi 2024 Budget: 1.172 Trillion Riyals in Revenues

The Saudi Cabinet approves the 2024 budget (SPA)
The Saudi Cabinet approves the 2024 budget (SPA)
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Saudi 2024 Budget: 1.172 Trillion Riyals in Revenues

The Saudi Cabinet approves the 2024 budget (SPA)
The Saudi Cabinet approves the 2024 budget (SPA)

The Saudi government, in a meeting chaired by King Salman bin Abdulaziz on Wednesday, approved the Kingdom’s 2024 budget.

While next year’s revenues are estimated at SAR 1.172 trillion, total expenditure is projected at SAR1.251 trillion, resulting in a limited deficit of SAR79 billion.

After the budget’s approval, Crown Prince Mohammed bin Salman highlighted the achievements of the Kingdom since the launch of its national transformation plan “Vision 2030.”

He commended the government’s ongoing structural reforms in both the financial and economic realms, aiming to sustain economic growth in light of the substantial developmental opportunities and resources available to the Kingdom within the framework of Vision 2030.

This strategic vision, guided by the directives of King Salman, has notably contributed to the clear and significant increase in the non-oil sector’s contribution to Saudi Arabia’s Gross Domestic Product (GDP).

The Crown Prince emphasized the government's commitment, as reflected in the fiscal year 2024 budget, to stimulate economic growth through an expansion of government spending.

He clarified that the budget figures serve as a supportive framework for numerous programs and initiatives, encompassing investments to enhance infrastructure, improve the quality of services provided to citizens, residents, and visitors.

Additionally, the budget allocates resources for the development of promising economic sectors, fostering investment attraction, stimulating industries, increasing local content, and boosting non-oil Saudi exports.

He commended the pivotal role played by both the Public Investment Fund (PIF) and the National Development Fund (NDF).

The Crown Prince also affirmed the ongoing efforts to enhance the Kingdom’s public financial performance by increasing financial capacity and building government reserves.

This approach aims to strengthen the Kingdom’s economic resilience, maintain sustainable levels of public debt, and empower the nation to confront any future developments or crises.

Furthermore, he stressed that the increase in spending is primarily driven by the government’s commitment to continually improve the level of public services.

The implementation of various projects and the expansion of spending on sectoral and regional development strategies aim to bring about positive structural changes, expanding and diversifying the economic base.

The Crown Prince also emphasized the development of partnerships with the private sector, aiming to empower and incentivize it to play a role in achieving economic diversification.

This strategic approach seeks to enable the labor market to absorb more Saudi workers, create job opportunities, and reduce unemployment rates among Saudis.

The total number of Saudis in the workforce has risen to 2.3 million this year.

Additionally, there is a focus on improving the investment environment to make it attractive, thereby increasing both local and foreign investment, fostering non-oil exports, and enhancing the non-oil trade balance.

The Crown Prince further elaborated on the ongoing journey towards economic diversification by supporting promising sectors.

The Kingdom aims to increase tourism targets to 150 million visitors, both domestic and international, by 2030. Efforts also include building a vibrant sports sector.

The commitment to developing the industrial sector, a vital component of the Saudi economy, was emphasized as well.

This involves diversifying the industrial base and value chains. The goal is to triple the industrial GDP to SAR 895 billion by 2030, making a significant contribution to the development of non-oil exports.

The PIF, as a key investment arm, complements government efforts to diversify the economy, along with the pivotal role played by the NDF and its affiliated funds in providing easy financing for the private sector.

Addressing the Kingdom’s regional and international role, the Crown Prince affirmed its commitment to global security and stability, recognizing them as essential factors for development and prosperity.

The Kingdom is dedicated to enhancing supply and value chains to serve the economic development of all countries globally.

The Crown Prince reaffirmed the Kingdom’s determination to continue enhancing its economic attractiveness for both local and foreign investments in the coming year.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."